Dongkuk Steel to invest $730 million in mill in Brazil

Dongkuk Steel Mill, Korea’s third-largest steelmaker, said yesterday that its board of directors has approved a $730 million investment in a steel mill in Brazil.

Dongkuk Steel; Vale SA, the world’s largest iron ore producer; and Korea’s leading steelmaker Posco have been seeking to build a 3 million-ton steel slab plant in the Brazilian state of Ceara by the end of 2015.

The three companies have set up a joint venture called CSP to build the plant.

The planned investment by Dongkuk Steel reflects a 30 percent share in CSP. Vale will own 50 percent and Posco will claim a 20 percent stake in the joint venture.

Meanwhile, CSP will invest a total of $4.86 billion in the project, around half of which will be funded by the three firms, Dongkuk Steel said.